Where Will U.S. Clients Migrate To?
Founded in 2014 in the United States, Poloniex has long been an established and well reputed exchange. Over the years over 100 different cryptocurrencies were featured on Poloniex and It grew to the 14th largest exchange. In 2018, Poloniex was purchased by Circle Internet Financial Ltd. which promised to complete all the necessary licensing with U.S. authorities.
It seems that Circle has failed its mission and sold Poloniex to Polo Digital Assets which is associated with Tron 's Justin Sun. As part of the sale, Poloniex has restricted U.S. traders from trading since the 1st of November 2019.
What's Going with Poloniex Today?
Since the sale to Polo Digital Assets, U.S. traders could no longer trade on the platform and many have migrated to others. Poloniex & Circle have both warned U.S. clients to withdraw their funds until December 15th, 2019.
Funds left in the exchange after that date will be forfeit.
Unfortunately, many traders tend to avoid recommendations and leave their funds in exchanges for ease-of-use. Traders that missed Poloniex's announcements or emails might be at risk.
Many U.S. traders could choose to migrate to another regulated and U.S. based exchange such as Binance.us or Coinbase. Essentially Poloniex's client migration might cause them to fade into obscurity but could benefit Coinbase or Binance.
Lets just hope that U.S. regulations won't cause more exchanges to depart from the United States.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado